Fresh from finishing its first acquisition in China, contract manufacturer and medical molding firm Phillips-Medisize Corp. plans to open a satellite design center there.

Speaking at a news conference at the recent Medtec China show in Shanghai, Phillips-Medisize President and CEO Matt Jennings did not offer details about the design center in its new Suzhou factory, but said the company will hire engineers over the next year to staff it.

The privately held Hudson, Wis.-based company bought both the Suzhou factory and Omni Manufacturing Services SA de CV in Queretaro, Mexico, in July from Swiss firm Adval Tech Group. Terms were not disclosed.

The plant in Suzhou is ISO 9001 and 13485 compliant and has capabilities to manufacture intravenous drug delivery devices, Jennings said at the Sept. 25 event. The company said it was encouraged to come to China by its clients.

"This is our first step in China. We see this as the largest and most important market for us in Asia," he said. "We will focus on working with local customers to help design and develop products for them. We think that will keep us busy for a while."

Jennings said Phillips-Medisize has been awarded one new medical drug delivery finished device that will be transferred from Switzerland to China for the China market, to be launched in April or May. The Suzhou factory is certified by the Chinese State Food and Drug Administration to manufacture finished drug delivery systems and related devices.

He said the company is in talks with a dozen companies, mostly North American and European but including a few Chinese, about work in the Suzhou operation.

Jennings said the company went through a long two-year search, looking at 100 possible acquisition candidates before narrowing the list to two or three finalists.